India’s GDP Growth Estimated at 6.4%
New Delhi: Fitch Ratings stated that India’s budget reflects the government’s continued commitment to maintaining economic stability. The budget aims to gradually reduce government debt, thereby strengthening the country’s fiscal position. While no major reforms were announced, Fitch expressed expectations of further reforms in the future, particularly with regard to regulatory easing.
The decision to maintain capital expenditure at 3.1% of GDP in 2026–27 is seen as a step toward encouraging private investment and reinforcing economic growth. Fitch noted that the pace of fiscal consolidation is likely to remain gradual. The fiscal deficit target for 2026–27 has been set at 4.3% of GDP, slightly lower than 4.4% in the previous year.
Fitch projected India’s GDP growth at 6.4% for 2026–27 and added that a faster pace of reforms would boost private investment and further strengthen India’s potential economic growth.
